ACKNOWLEDGEMENTS

Nicholas Wallace wishes to thank and feels deeply indebted to many individuals for their
support and assistance in the completion of this project. These persons are deserving of
considerable credit.
They include:
i.

His mother and father for their support and guidance and overseeing this

project from inception to completion.

ii.
His brother and sister for their input and constructive criticism, being that
iii.

that they both completed similar projects.

His teacher, Mrs. Stevens for her guidance and patience which was not only

helpful but essential in making this project a reality.

iv.
His fellow classmates, for their constructive discussions which were very
helpful and lead to the corrections of minor mistakes.

i
DESCRIPTION OF THE BUSINESS

The Reds Smoothies is a sole trader business owned by Mr. Nicholas Wallace. This
business would provide a wide variety of smoothies and shake in various sizes along with
a variety of pastries. These sizes would include the Chilin out Cup (Large), the Stop n
Go Cup (Medium) and the On the Go Cup (Small). In addition, small pastries will be
available between the hours of 10:00 a.m. and 2:00 p.m. Customers will be offered a
wide range of flavors to choose from and various combinations and personal mix
requests will be accommodated. The main objective of the business would be to provide
the most exotic smoothies at the most economical price.
The target market of The Reds Smoothies would include young professionals and high
school students. To reach this target market, several strategies will be employed. These
include the distribution of flyers, advertising in local newspapers and on local television
stations as well as offering a 15% discount on all smoothies purchased within the first
week of operation. The business would also offer a take-out service as well as an eating
arena.

1
MISSION STATEMENT

To provide the best frozen drinks and pastries at the most economical price in a
customer friendly environment in order to please the customer.

2
JUSTIFICATION OF LOCATION

The Reds Smoothies being a small business competing in a semi- large food industry
would be very careful in the selection of its location.
The business would be located in the popular area of Beckford Street where there are
similar businesses in an effort to benefit from the existing market. The ideal location is
shop #16, Hendon Mall. This location would provide the business with an excellent
source of potential customers as it is an area rich in pedestrian traffic. This location is
surrounded by many high schools, football field, banks and government offices. Another
reason for this location would be the availability of sufficient space to establish the
business and to provide adequate parking facilities for its customers.

3
SELECTION OF APPROPRIATE LABOUR

The Reds Smoothies, in deciding on how its recruitment exercise would be carried out
chose the use of private employment agencies and references from trusted friends and
relatives. This method of recruitment, in addition to reducing the costs, is less time
consuming and provides the business with employees with the necessary experience and
qualities for working in the business.
The specific skill levels required by The Reds Smoothies for the efficient running of the
business, includes a combination of unskilled, semi-skilled, skilled and managerial. The
unskilled and semi- skilled jobs in this business would require individuals with little or no
special training and would mainly involve persons working with their hands.
Individuals working on the skilled level would include bartenders and cashiers who
would need necessary qualifications and experience for their position. This category
would be responsible the preparation and proper presentation of the beverages and
pastries as well as maintaining a high level of integrity and honesty when taking orders
and collecting payments.
The managerial skill level however, would require persons who have adequate
knowledge and qualifications for running a business as well as foresight and excellent
work experience in similar positions. This level would be occupied by the entrepreneur
and managing supervisors. All prospective employees who are short listed would be
required to attend an interview and provide suitable references.

4
SOURCES OF CAPITAL

The Reds Smoothies decided that in order for the business to get the necessary start-up
capital to fund its operation, it would obtain a loan from the bank. In addition, personal
savings and money acquired from the sales of personal assets would be used. The motor
vehicle owned by Mr. Wallace will be used as collateral.
The loan obtained from the bank would be used as fixed capital for purposes such as
purchasing items such as industrial blenders, mixers, freezers and refrigerators.
Working capital would be funded from personal savings and the proceeds from the sale
of a personal asset. This would be used for the day-to-day operation of the business,
including the purchase of required stock of ingredients, payments of rent, utility bills,
employee salaries and other necessary purchases.

FUNCTIONS OF THE ENTREPRENEUR

The primary role of the entrepreneur is to oversee all operations of the

business, ensuring it provides a profitable return on investments.
The entrepreneur is also responsible for making decisions affecting the
viability of the business. This might involve taking preventative actions to
avoid

future

problems

and

making

decisions

regarding

growth

and

development. In addition, it is the responsibility of the entrepreneur to ensure

that all operations are coordinated and running smoothly to achieve maximum
efficiency and that his operations conform to all government regulations. It is
therefore important for him to make the right decisions concerning the
employment of the required resources for his business.

6
TYPE OF PRODUCTION

In the case of The Reds Smoothies, the nature of its operation that is the making and
selling of blended drinks, would determine that it be classified as the secondary
manufacturing (refining) type of production.
This industry takes raw products such as syrups, sugar and artificial flavors in the case of
Smoothies and a combines them to create a finished product which is excellent
smoothies.

7
LEVEL OF PRODUCTION

The level of production which The Reds Smoothies operates at would be classified as
domestic since almost everything involved in the production of frozen drinks will be
produced and sold locally by the use of the countrys natural and human resources.

8
QUALITY CONTROL MEASURES

The Reds Smoothies has established a number of quality control measures as a means
of regulating the quality and standard of its product.
These measures include conducting a number of taste tests prior to opening to the
public to determine the standardized number of ingredients that would be needed to
ensure that its products maintain a high standard at all times, both in terms of taste as
well as value for money. It will also be ensured that there will always be a fresh stock of
ingredients available to make these products. Another measure requires that employees
handle beverage and food- related operations in a clean and hygienic manner.

9
LINKAGES

The forward linkages that can be established would be linking with other fast food
restaurants to facilitate easier distribution of frozen beverages to all customers.
The linkage would cause the Marketing Mix to come into place. Customers will have the
advantages of comparing prices and comparing the product quality. The location of the
restaurant is perfect, as it is in close range to others. Promotion will be much easier
because all the restaurants are in walking range of each other.

10
POTENTIAL FOR GROWTH

All small businesses aim to increase their profits, expand the business and thereby
attract more customers. This would be the same for The Reds Smoothies.
It plans to start out as a small business with a vision for growth and expansion after the
first two and a half years of operation. Profits would be reinvested in the business with
the hopes of opening at least two more branches in nearby towns.
There are also plans for internal growth. Adding new products to offer customers a more
varied selection and increasing the daily output of smoothies being supplied. Also, as a
result of internal growth more employees would be needed to cope with the increase in
production and future expansion of the business.

11
GOVERNMENT REGULATIONS

Government regulations are usually introduced in response to concerns about matters

such as product safety, advertising worker safety, environmental issues and laws were
therefore made to regulate the activities of the business.
In a business such as The Reds Smoothies, the first aspect of government regulations
that would have to be adhered to is having the business registered. For a business in the
food industry, it is of paramount importance that all products are processed under clean
and hygienic conditions. To ensure this, the business has to conform to standards set by
the Ministry of Health. These standards guard against endangering the lives of
customers. Hence, it is required that apart from the business having a license to operate,
all persons directly involved in the manufacturing of the frozen beverages must possess
a Food Handlers Permit.
In addition, the business will be subjected to periodic inspections from Government
Public Health Inspectors. This will ensure that the business is always up to standard, thus
ensuring that the business will gain an excellent reputation.

12
ETHICAL ISSUES

The Reds Smoothies is a business organization that thinks it important for the firm, its
management and employees to maintain a good ethical behavior at all times. For this
reason, it has adopted a Code of Ethics which would provide all members of the
organization with a set of ethical guidelines. Adherence to these standards is integral to
achieving the objectives of Groovy Smoothies. The management and employees shall
not commit acts contrary to these standards nor shall they condone the commission of
such acts by others within the organization.
These ethical guidelines for both management and employees include:
v.
vi.

Being honest, trustworthy and loyal to the organization

Guarding against misleading advertisements.

The firm must also:

vii.
viii.

Prevent causing any pollution to the environment

Pay taxes due to the government

13
BIBLIOGRAPHY

Essential Principles of Business for the Caribbean by S. Hamil and A. Whitcomb

Kingston, Jamaica: Carlong Publishers 2001

Business-Its Nature and Environment by R. Glos, R. Steade and J. Lowry

Cincinnati, Ohio: South- Western Publishing

Strategic Management by P. Wright, C. Pringle, K. Kroll and J. Parnell

Englewood Cliffs, New Jersey: Simon and Shuster Company 1994

Organizational Behavior by S. Robbins

Englewood Cliffs, New Jersey: Simon and Shuster Company 1994

14
APPENDIX 1
QUESTIONNAIRE

Good day, I am Nicholas Wallace, the owner of The Reds Smoothies who is investigating
the feasibility of frozen drinks. I am therefore conducting a market survey in order to
develop a business plan. Please allow me a few minutes of your time to complete this
questionnaire.
Gender: Male ( )

Female ( )

Age: 12- 14 ( )

15- 19 ( )

20 and over ( )

1. Where do you reside? ____________________________________________________________

2. Are you currently working?
Yes ( )

No ( )

3. What is your occupation?

_____________________________________________________________

4. What are your working hours?

7:00 am 3:00 pm ( )
Other_______________

8:00 am- 4:00 pm ( )

9:00 am- 5:00 pm ( )

5. Do you use the product of frozen beverages?

Yes ( )

No ( )

6. If yes, how far do you travel to get to the nearest smoothie store?
1-3 miles ( )
4 -6 miles ( )
___________________________

7- 10 miles ( )

Other

7. Are you satisfied with the smoothies you are receiving?

Yes ( )

No ( )

15

8. What time of day do you usually visit the smoothie store?

Morning ( )

Afternoon ( )

Evening ( )

Night ( )

9. How often do you visit the smoothie store?

Regular ( )

10.

Rare ( )

How much do you usually spend on smoothies?

Under $ 50 ( )

11.

Seldom ( )

$75-$100 ( )

$100- $150 ( )

Other __________________

How would you rank the smoothies that you currently receive?

Excellent ( )

Good (

Fair ( )

Poor ( )

12.
If your answer is fair or poor in the above question (no. 11), what can be
done to improve this product?
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________

16
TABLE OF CONTENTS
PAGE

Acknowledgements
i
Description of the Business/ Executive Summary
1
Mission Statement
2
Justification of Location

Selection of Appropriate Labour

4
Source of Capital

Role of Entrepreneur
6
Type of Production
7
Level of Production
8
Quality Control Measures
9
Linkages

10

Potential for Growth

11
Government Regulations
12
Ethical Issues
13
Bibliography
14
Appendices
Appendix 1- Questionnaire
Appendix 2- Organizational Chart

15

A SCHOOL BASED ASSESSMENT FOR

CXC
(GENERAL PROFECIENCY)
PRESENTED TO THE BUSINESS
EDUCATION DEPARTMENT OF
MANNINGS SCHOOL, JAMAICA W.I.
IN PARTIAL FULFILLMENT OF
CERTIFICATION IN PRINCIPLES OF
BUSINESS
SUBMITTED BY: NICHOLAS WALLACE

REGISTRATION #: ----------------------DATE: 2010- 2011

TEACHER: MRS. T. STEPHENS

TITLE: A BUSINESS PLANPRODUCTION

THE REDS SMOOTHIES